A key obstacle standing in the path of launching online sports betting in Maryland has finally been cleared.
Maryland’s Sports Wagering Application Review Commission (SWARC) on Wednesday gave unanimous approval to proposed draft regulations that lay down the ground rules for operators to apply for mobile sports betting licenses.
This represents a key step forward in a lengthy approval process that has delayed online sportsbooks from launching operations in Maryland despite the passage of legislation over a year ago legalizing mobile wagering in the state.
In recent months, Maryland Gov. Larry Hogan has been pressuring SWARC to speed up its deliberations so that the sportsbooks could launch in time for the Sept. 8 opening of the NFL regular season.
In a heated letter to SWARC last month, Gov. Hogan urged the Commission to "immediately accelerate and intensify" its approval process so that the state could begin collecting tax revenues from what is expected to be a record NFL betting season.
Hogan has been adamant about giving the highest priority to granting mobile licenses to the 17 entities already approved for retail betting licenses in legislation he signed into law in May 2021. Five casinos launched retail betting operations in Dec. 2021, and the opening of additional brick-and-mortar sportsbooks is in the works.
Final approval process will take time
Yet Hogan's wish for an early September rollout would appear to be a remote possibility even after SWARC gave its blessing to tentative mobile license application regulations and forms.
These regulations are still subject to approval by the Maryland General Assembly’s Joint Committee on Administrative, Executive and Legislative Review (AELR), which is not expected to vote on the license rules until mid-August.
And even after AELR approval, a mandatory 30-day public comment period comes into effect which allows state residents and other interested parties to submit comments in writing or make oral representations at a public meeting to be held before the end of the 30 days.
Changes could still slow issuing of licenses
In addition, SWARC has yet to receive and review an industry diversity study that was commissioned as part of its deliberations and which, according to SWARC Chair Thomas Brandt, could result in changes to the regulations and applications. No license applications can be accepted by SWARC until the industry study has been completed.
"Once the emergency SWARC regulations become effective and the industry analysis is completed, SWARC can set a date when formal applications and fees may be submitted," Brandt said during Wednesday's meeting. "Then we’ll be in a position to set a timeline for additional actions."
In the meantime, however, SWARC has invited prospective applicants to visit its official website to review the draft documents. This could at least give operators the chance to prepare their license bids so that they can be filed quickly when the application window opens.
The state has the power to grant up to 60 mobile sports betting licenses and 47 total retail permits, and there will likely be a furious rush on the part of the major sportsbook operators to gain approval for their applications and finally launch online betting in Maryland.
Swift licensing of the major sportsbooks could not come at a more opportune time as recent months have seen revenues and total handle remain relatively weak on the retail side, which is currently the only form of legal sports betting in the state.
A report released by the Maryland Lottery and Gaming Control Agency this Monday showed the state's five casinos with sports betting handled only a modest total of $19.1 million in wagers in June. This represents a 17.2% decline from the $23.1 million May handle and was the lowest recorded monthly wagering figures since retail betting became operational in December in Maryland.
A further indication of the current depressed state of Maryland's betting sector was the massive 57.4% drop in gross gaming revenues to $1.3 million as compared to $3.1 million for May.
